World Bank retains India’s 2025-’26 GDP growth forecast at 6.3%

India’s economy is projected to grow at a rate of 6.3% in the financial year 2025-’26, a World Bank report said on Tuesday.

In its latest “Global Economic Prospects” report, the international financial institution retained its gross domestic product growth forecast for the current fiscal, which it had cut by 40 basis points in April.

A basis point is one-hundredth of a percentage point. Basis points are used to describe the percentage change in the value of a financial instrument.

The World Bank, however, flagged concerns about a potential slowdown in investment due to global economic uncertainty. India will be the fastest-growing large economy in the world at the projected rate, the report said.

The bank also cut its growth forecast for India by 20 basis points for 2026-’27 to 6.5%. The gross domestic product is expected to grow at 6.7% in 2027-’28, with economic activity “partly supported by robust services activity that contributes to a pick up of exports”.

The report came days after the Reserve Bank of India announced a larger-than-expected 50 basis point cut in its policy repo rate on June 6, bringing it down to 5.5%.

The repo rate is the interest rate at which the central bank lends money to commercial banks.

The Reserve Bank of India’s Monetary Policy Committee decides on changes...

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